Pre-Paid Activation and Replenishment on a Point-of-Sale Device

ABSTRACT

A system and method for processing prepaid financial transactions. The system and method describe the utilization of one or more remote terminals that are adapted to acquire transaction information from a user and transmit a first signal indicative of the transaction information. The remote terminal is further adapted to receive a second signal indicative of authorizing information that is delivered to the user. In addition, an authorizing host is adapted to receive the first signal transmitted by the one or more remote terminals. In one aspect, the authorizing host routes the first signal including the transaction information to an exchange host for approval of the financial transaction, and the exchange host transmits the second signal including the authorizing information to the remote terminal via the authorizing host.

BACKGROUND

1. Field

The present teachings relate to financial transactions and, inparticular, to a system and method pertaining to prepaid activation andreplenishment with a point-of-sale device.

2. Description of the Related Art

In general, prepaid products and services, such as prepaid callingcards, prepaid cellular phone service, prepaid movie rentals, etc., arepopular. Many retail locations offer these prepaid products and servicesfor sale. Unfortunately, common prepaid products and services areinconvenient for merchants to process due to worker inefficiency. Forexample, a customer requests prepaid service, such as a purchasingprepaid long distance minutes, by taking a calling card to the merchantcounter so that the worker can activate the minutes on the calling card.The merchant is then required to call the service provider and activatethe minutes, which can tie up the phone system and take an undesirablylong time. Typically, the minutes on the calling card cannot beactivated until an authorization code, such as a PIN number, is given tothe worker over the phone and, subsequently, given to the customer. Thisprocess can be inconvenient for the merchant due to the amount of timethe worker has to spend on phone with the service provider while waitingfor authorization. Also, this may cause some stress for the merchant andworker because there may be other customers in line impatiently waitingfor their turn.

While more efficient systems exist for processing transactions, such asrisk analysis and assessment, many of these systems do not have thecapability to handle prepaid services as prepaid services may have amany different vendors or service providers for each product or service.One example of a transaction processing system includes an automatedcheck acceptance service, such as Telecheck, that uses an existingcommunication network for electronic check verification and acceptance.Typically, these check acceptance services use a dedicatedcommunications network that automatically transmits information aboutthe promissory payment to a central approval agency which thenautomatically processes the transaction. Subsequently, the vendorreceives an indication whether the transaction is to be accepted ordeclined. As such, the check acceptance services does not impose asubstantial burden on the worker in the store as it is a largelyautomated process that utilizes a separate communications network.

Unfortunately, the use of a dedicated automated network is generally notfinancially viable for pre-paid goods and services. Specifically, it ispossible that the store front will have to have a separate networkconnection for each prepaid good or service being sold. This couldinclude a separate network for each identical goods and servicesprovided by competing suppliers. Further, the cost of developing thenetwork for the pre-paid services is generally an expense that pre-paidservices have been unwilling to undertake.

Hence, there is a need for a more efficient way of activating prepaidgoods and services. To this end, there is a need for an automatedauthorization service that can be used with a variety of differentpre-paid goods and service providers which does not require separatenetworks for each goods and services provider.

SUMMARY

The aforementioned needs are satisfied in one aspect, by a checkacceptance network that has been modified to accept transactionsrelating to prepaid goods and services. Check acceptance agenciesincludes point of sale devices located in a plurality of store locationsthat can transmit data to a risk approval agency which evaluates therisk of accepting a proffered promissory payment. In one implementation,the point of sale device has been modified to permit the transmission ofdata to the risk assessment agency relating to a request to purchase aprepaid good or service.

In one implementation, the risk assessment agency recognizes the requestfor a prepaid good or service transaction and forwards the request tothe appropriate prepaid good or service provider. In this implementationthe risk assessment agency is further adapted to receive authorizationcodes from the prepaid good or service provider and provide these codesback to the originating point of sale device in the store. In this way,an existing distributed network can be used to authorize point of saledevices without requiring an individual at the store to contact thepre-paid good and service provider directly.

One aspect of the present teachings relates to a system for assessingthe risk associated with a proffered promissory payment. The system islinked to at least one prepaid goods or service provider. The systemincludes a plurality of point of sale devices located within a pluralityof distributed locations. The plurality of point of sale devices acquireinformation about proffered promissory payments and also acquireinformation about requests for prepaid goods or services. The pluralityof point of sale devices include a communications interface forcommunicating information to individuals within the plurality ofdistributed locations. The system further includes an authorizing hostthat is communicatively linked to the plurality of point of saledevices. The authorizing host receives the information about theproffered promissory payments and assesses the risk of accepting theproffered promissory payment. The authorizing host communicatesacceptance or decline information to the point of sale devicecorresponding to a particular proffered promissory payment. Theauthorizing host is adapted to route a request for a prepaid good orservice to the corresponding goods or services provider and thentransmit acceptance or decline information to the point of sale deviceoriginating the request for prepaid good or service.

In one embodiment, the plurality of transaction devices acquirefinancial information about a proffered promissory payment that includethe amount, the account corresponding to the proffered promissorypayment, the account holder and further transmits information about themerchant to the authorizing host such that the authorizing host canperform risk assessment on the proffered promissory payment.

In one embodiment, the plurality of transaction devices include an inputfor inputting information. The communications interface includes adisplay screen that displays the acceptance and decline information.

In one embodiment, the plurality of transaction devices allow themerchant to transmit requests for prepaid goods or services for aplurality of different prepaid goods and service providers and receiveacceptance and decline information from the plurality of differentprepaid goods and service providers via the authorizing host. In oneembodiment, the plurality of different prepaid goods and serviceproviders include cellular telephone providers, long distance telephoneproviders, video rental providers. In one embodiment, the authorizinghost and the plurality of transaction devices are configured to providean authorizing code to the purchaser of the prepaid goods and servicesin response to the prepaid good and service provider approving therequest for prepaid goods and services. In one embodiment, theauthorizing code includes a PIN number that the purchaser utilizes toactivate the prepaid good or service.

Another aspect of the present teachings relates to a point of saledevice adapted to be positioned within a store for transmittingfinancial information about proffered promissory payments to a centralauthorizing agency. The point of sale device is further adapted toreceive requests for prepaid goods and services and transmit thoserequests to the central authorizing agency for subsequent retransmissionto the prepaid goods and service provider. The point of sale device isfurther adapted to provide approval or decline information about theproffered promissory payments and the prepaid goods and service requeststo individuals.

In one embodiment, the point of sale device includes one or more userinputs for inputting information about the proffered promissory paymentand the requests for prepaid goods and services into the point of saledevice. In one embodiment, the one or more user inputs includes ascanner for scanning magnetic information off of checks. In oneembodiment, the one or more user inputs includes a keypad for enteringdata relating to the request for prepaid goods and services.

In one embodiment, the point of sale device includes a display fordisplaying an authorization code to the purchaser of the pre-paid goodsand services. In one embodiment, the authorization code includes a PINnumber suitable for activating additional minutes on a cellulartelephone account.

Yet another aspect of the present teachings relates to a system forprocessing requests for prepaid goods and service. The system includes arisk assessment system having a plurality of distributed transactiondevices located at a plurality of different locations and an authorizinghost that receives information about proffered promissory payments fromthe plurality of distributed transaction devices. The authorizing hostperforms a risk assessment on the proffered promissory payments andsends approval or decline signals to the distributed transaction devicewhere the proffered promissory payment originated. The risk assessmentsystem is configured to allow individuals to send requests for prepaidgoods and services via the risk assessment system to prepaid good andservices vendors independent of the risk assessment system and receiveapproval information from the goods and service vendors via the riskassessment system.

In one embodiment, the plurality of transaction devices acquirefinancial information about a proffered promissory payment that includethe amount, the account corresponding to the proffered promissorypayment, the account holder and further transmits information about themerchant to the authorizing host such that the authorizing host canperform risk assessment on the proffered promissory payment.

In one embodiment, the plurality of transaction devices include an inputfor inputting information. The communications interface includes adisplay screen that displays the acceptance and decline information.

In one embodiment, the plurality of transaction devices allow themerchant to transmit requests for prepaid goods or services for aplurality of different prepaid goods and service providers and receiveacceptance and decline information from the plurality of differentprepaid goods and service providers via the authorizing host. In oneembodiment, the plurality of different prepaid goods and serviceproviders include cellular telephone providers, long distance telephoneproviders, video rental providers. In one embodiment, the authorizinghost and the plurality of transaction devices are configured to providean authorizing code to the purchaser of the prepaid goods and servicesin response to the prepaid good and service provider approving therequest for prepaid goods and services. In one embodiment, theauthorizing code includes a PIN number that the purchaser utilizes toactivate the prepaid good or service.

Yet another aspect of the present teachings relates to a method ofprocessing financial transactions. The method includes transmitting dataabout a proffered promissory payment offered at a remote location to acentral authorization host. The method further includes performing riskassessment on the proffered promissory payment. The method furtherincludes transmitting an acceptance or decline of the profferedpromissory payment from the central authorization host to the remotelocation. The method further includes transmitting data about a requestfor a prepaid good and service from the remote location to a prepaidgoods and service provider via the central authorization host. Themethod further includes providing authorization information to theremote location from the prepaid good and service provider via thecentral host.

In one embodiment, transmitting data about a proffered promissorypayment offered at a remote location to a central authorization hostincludes sending data about a check written to a merchant to the centralauthorization host. In one embodiment, performing risk assessment on theproffered promissory payment includes evaluating the history of theperson writing the check, the amount of the check, the type oftransaction and characteristics of the merchant to determine whether toaccept or decline the check.

In one embodiment, transmitting data about a request for a prepaid goodand service from the remote location to a prepaid good and serviceprovider via the central authorization host includes sending anelectronic signal having the request to the central authorization hostidentifying a particular good and service provider, and routing theelectronic signal having the request from the central host to theparticular good and service provider. In one embodiment, providingauthorization information to the remote location from the prepaid goodand service provider via the central host includes transmitting a PINnumber from the prepaid good and service provider to the remote locationvia the central authorizing host.

Yet another aspect of the present teachings relates to a system forprocessing financial transactions. The system includes means fortransmitting information including financial data and requests forprepaid goods and services to and from a plurality of remote locations.The system further includes means for evaluating financial data from themeans for transmitting information to ascertain the risk of acceptingproffered promissory payments. The means for evaluating financial dataincludes means for retransmitting requests for prepaid goods andservices to an external goods and service provider and means fortransmitting authorization information from the external goods andservice provider to the means for transmitting financial data andrequests for prepaid services.

In one embodiment, the means for transmitting information includingfinancial data and requests for prepaid good and services includes aplurality of point of sale devices located within a plurality ofdistributed locations. The plurality of point of sale devices acquireinformation about proffered promissory payments and also acquireinformation about requests for prepaid goods or services. The pluralityof point of sale device include a communications interface forcommunicating information to individuals within the plurality ofdistributed locations.

In one embodiment, the plurality of transaction devices acquirefinancial information about a proffered promissory payment that includethe amount, the account corresponding to the proffered promissorypayment, the account holder and further transmits information about themerchant to the authorizing host such that the authorizing host canperform risk assessment on the proffered promissory payment.

In one embodiment, the plurality of transaction devices include an inputfor inputting information. The communications interface includes adisplay screen that displays the acceptance and decline information.

In one embodiment, the plurality of transaction device allows themerchant to transmit requests for prepaid goods or services for aplurality of different prepaid goods and service providers and receiveacceptance and decline information from the plurality of differentprepaid goods and service providers via the authorizing host.

In one embodiment, the means for evaluating financial data from themeans for transmitting information to assess the risk of acceptingproffered promissory payment includes an authorizing host that iscommunicatively linked to the plurality of point of sale devices. Theauthorizing host receives the information about the proffered promissorypayments and assesses the risk of accepting the proffered promissorypayment. The authorizing host communicates acceptance or declineinformation to the point of sale device corresponding to a particularproffered promissory payment. The authorizing host is adapted to route arequest for a prepaid good or service to the corresponding goods orservices provider and then transmit acceptance or decline information tothe point of sale device originating the request for prepaid good orservice. In one embodiment, the authorizing host and the plurality oftransaction devices are configured to provide an authorizing code to thepurchaser of the prepaid goods and services in response to the prepaidgood and service provider approving the request for prepaid goods andservices. In one embodiment, the authorizing code includes a PIN numberthat the purchaser utilizes to activate the prepaid good or service.

Yet another aspect of the present teachings relates to a system forassessing the risk associated with a proffered promissory payment, wherethe system is linked to at least one prepaid goods or service provider.The system includes a plurality of point of sale devices located withina plurality of distributed locations. The plurality of point of saledevices acquire information about a first type of financial transactionand also acquire information about a second type of financialinformation. The plurality of point of sale devices include acommunications interface for communicating information to individualswithin the plurality of distributed locations. The system furtherincludes an authorizing host that is communicatively linked to theplurality of point of sale devices. The authorizing host receives theinformation about the first type of financial transaction assesses therisk of associated with the first type of financial transaction. Theauthorizing host communicates acceptance or decline information to thepoint of sale device corresponding to first type of financialtransaction. The authorizing host is adapted to route information aboutthe second type of financial information to a corresponding externalprovider and then transmit acceptance or decline information to thepoint of sale device originating the second financial transaction.

In one embodiment, the first type of financial transaction includes aproffered promissory payment. The second type of financial transactionincludes a request for prepaid goods or services.

In one embodiment, the plurality of transaction devices acquirefinancial information about a proffered promissory payment that includethe amount, the account corresponding to the proffered promissorypayment, the account holder and further transmits information about themerchant to the authorizing host such that the authorizing host canperform risk assessment on the proffered promissory payment.

In one embodiment, the plurality of transaction devices include an inputfor inputting information. The communications interface includes adisplay screen that displays the acceptance and decline information.

In on embodiment, the plurality of transaction devices allow themerchant to transmit requests for prepaid goods or services for aplurality of different prepaid goods and service providers and receiveacceptance and decline information from the plurality of differentprepaid goods and service providers via the authorizing host. In oneembodiment, the plurality of different prepaid goods and serviceproviders include cellular telephone providers, long distance telephoneproviders, video rental providers. In one embodiment, the authorizinghost and the plurality of transaction devices are configured to providean authorizing code to the purchaser of the prepaid goods and servicesin response to the prepaid good and service provider approving therequest for prepaid goods and services. In one embodiment, theauthorizing code includes a PIN number that the purchaser utilizes toactivate the prepaid good or service.

These and other objects and advantages of the present teachings willbecome apparent from the following description taken in conjunction withthe accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 illustrates one embodiment of a system for processing financialtransactions.

FIG. 2 illustrates one embodiment of the transaction device.

FIG. 3A illustrates one embodiment of a transaction data/informationpackage that can be transmitted from the transaction device to theauthorizing host.

FIG. 3B illustrates one embodiment of a customer receipt that can bedelivered to a customer from the transaction device.

FIG. 4 illustrate one embodiment of a transaction process.

FIG. 5A illustrates one embodiment of a prepaid transaction process.

FIG. 5B illustrates one embodiment of a direction of flow for theprepaid transaction process of FIG. 5A.

DETAILED DESCRIPTION OF SOME EMBODIMENTS

Reference will now be made to the drawings wherein like numerals referto like parts throughout. FIGS. 1-5B illustrate various aspects relatedto a system and method pertaining to prepaid activation andreplenishment with a point-of-sale (POS) device.

FIG. 1 illustrates one embodiment of a system 100 for processingfinancial transactions. As illustrated in FIG. 1, the system 100comprises one or more transaction devices 104, such as remote terminalsor point of sale (POS) devices, and at least one authorizing host 108,such as a payment approval or risk assessment agency. The one or moretransaction devices 104 and the authorizing host 108 communicate in amanner so as to process financial transactions and manage the risk orlevel thereof associated with financial transactions. In addition, thesystem 100 including the one or more transaction devices 104 and theauthorizing host 108 is adapted to communicate with one or more prepaidexchange hosts 156 so as to process financial transactions involvingprepaid goods and services, such as prepaid wireless or cellular phoneservices, prepaid long distance calling card services, etc.

In one embodiment, the prepaid exchange host 156 comprises a prepaidservice provider that offers prepaid products and services for purchase,and requests for these prepaid products and services can be routed tothe prepaid exchange host 156 via the one or more transaction devices104 and the authorizing host 108. Additionally, the one or moretransaction devices 104, the authorizing host 108, and the prepaidexchange host 156 communicate, for example, via a transaction network132 comprising, for example, the transceiver components 128, 154 orvarious other communication links, such as a backbone network, atelephone network, an Intranet, the Internet, a modem, a wirelesssatellite link, etc. It should be appreciated that further scope andfunctionality related to processing and routing prepaid service requestswill be described in greater detail herein below.

In one embodiment, the transaction device 104 comprises a plurality offunctional components including a reader component 120, an inputcomponent 122, a prepaid component 124, a processor component 126, atransceiver component 128, and an output component 130. Additionally,the transaction device 104 is utilized by a merchant to acceptpromissory payments from customers. In one aspect, the transactiondevice 104 comprises a remote terminal or POS device, such as anEclipse™ device that is described in greater detail herein below andillustrated in FIG. 2. However, it should be appreciated by thoseskilled in the art that the transaction device 104 may also includevarious types of payment devices including a cash register, personalcomputer, etc. without departing from the scope of the presentteachings. Therefore, it should also be appreciated by those skilled inthe art that one or more of the components as described herein may beintegrated into the various types of payment devices without departingfrom the scope of the present teachings.

In one embodiment, the reader and input components 120, 122 may includevarious types of monetary exchange devices, such as check readers,credit card readers, debit card readers, keyboards for manual input ofaccount information, or some combination thereof for the purpose ofacquiring transaction information from customers or merchants at thepoint of sale. Also, the reader and input components 120, 122 of thetransaction device 104 identifies, by either magnetic ink characterrecognition (MICR) or optical character recognition (OCR), the AmericanBanking Association (ABA) account information printed on the face of thecheck draft and converts the customer's ABA account information totransaction information, which may include digital signals or digitalsignatures. The transaction information may then be transferred from thetransaction device 104 to the authorizing host 108 for processing.

In one embodiment, the transaction device 104 such as the check readerreads the entire MICR line (that includes routing, account, and checknumber information) and sends data associated with the MICR to theauthorizing host 108 for processing. Such MICR data can be formatted inany number of ways. In one embodiment, the check reader attachesidentifying markers to different portions of the MICR data, and sendsthe resulting raw MICR data to the host 108. For example, one way tomark the MICR data is to represent the raw data string of the MICR by a“T,” the on-us sign by an “O,” the amount signs by an “A,” and the dashby a “D.” Such a format of raw MICR data is sometimes referred to as araw TOAD data. In one embodiment, the host 108 receives the TOAD dataand parses it to obtain the various information contained therein.

In one embodiment, the point of sale device 104 is capable of providinginformation about a proffered promissory payment, such as a check, tothe authorizing host 108. The information includes identificationinformation about the individual proffering the promissory payment,including the account information, the amount of the transaction andinformation identifying the merchant. The authorizing host 108 can thenuse this information to assess the risk of accepting the profferedpromissory payment in a known manner and then provide back to the pointof sale device 104 an acceptance or decline of the transaction. Themanner in which the risk assessment is performed can include any of anumber of known risk assessment strategies.

In one embodiment, the point of sale device 104 simply transmitsinformation about the point of sale transaction to the host 108. Thehost 108 or some component of the host 108 (for example, a gateway tothe host) is configured to distinguish the point of sale transaction asa sale transaction or a prepay transaction. The host 108 can thenprocess the transaction accordingly. For example, the host 108 mayrequest additional validation via the point of sale device 104. The host108 then processes the transaction and returns a response to the pointof sale device 104. In one embodiment, parameters that drive the prepayprompting products are stored in and driven by a database that the hostmaintains for the merchants.

As is illustrated in FIG. 2, the authorizing host 108 includes a riskevaluation component 152 that evaluates risk of accepting the profferedpromissory payments provided by the remote transaction devices 104. Therisk evaluation component 152 can include a risk scoring engine or otherrisk determining mechanism that can access separate risk databasecomponents 154 in a known manner so as to be able to determine the riskof accepting the promissory payment. This allows the authorizing host108 to accept or decline the promissory payment and transmit theappropriate information to the corresponding transaction device 104.

As will be described in greater detail below, the prepaid component 124also acquires transaction and/or financial information related toprepaid goods and services, prepaid service requests, and prepaidtransaction information, such as prepaid cellular or wireless phoneminutes, calling card minutes, long distance calling card minutes, andmovie rentals including video and DVD rentals. In one example, theprepaid component 124 may acquire prepaid information from the customervia input from the merchant. The merchant may push a button on thetransaction device 104 or select a displayed menu item via keyboardentry. Subsequently, the merchant may input a monetary amount and someform of customer identity, such as the cell phone number, accountnumber, calling card serial number, etc., so as to link the customer,the merchant, the transaction device 104, and the prepaid exchange host156 to the prepaid service request. This allows the authorizing host 108to identify the type of transaction for proper processing and routing.In one aspect, the transaction information is transmitted from thetransaction device 104 to the authorizing host 108 in a data packet witha header or signature that identifies the prepaid transaction typeincluding other needed information for processing and routing of theprepaid service request, which will be described in greater detailherein below.

Additionally, the prepaid component 124 may further comprise a databasethat stores prepaid transaction information including merchantinformation and prepaid exchange host information related to themerchant's and prepaid exchange host's product offerings including theabove described prepaid services. Advantageously, the transaction device104 is adapted to access prepaid transaction information stored in theprepaid component 124 to verify the prepaid exchange host's productofferings.

In one embodiment, the transceiver component 128 of the transactiondevice 104 is adapted to transmit data and information including atransaction data package from the transaction device 104 to theauthorizing host 108. The transaction data package may include financialinformation about the customer and merchant and may include eitherprepaid transaction information about prepaid services and prepaidservice requests or transaction information about a proffered promissorypayment for risk assessment. In addition, the transceiver component 128is also adapted to receive data and information including approvaland/or decline data from the authorizing host 108. The transceivercomponent 128 may also be adapted to receive data and informationrelated to prepaid services and offerings from the prepaid exchange host156. The output component 130 may include a display monitor, a printer,or various other output peripherals generally known in the art. Thedisplay monitor may comprise a video monitor, a liquid crystal display(LCD), or any other relevant type of display. In one aspect, the prepaidexchange host's product offerings may be retrieved from the prepaidcomponent 124 and displayed on the output component 130, such as thedisplay monitor, for viewing thereof by a user, such as the merchant andcustomer.

In one embodiment, the processor component 126 of the transaction device104 is adapted to coordinate the functions of the transaction device104. The processor component 126 communicates with the reader and inputcomponents 120, 122 so as to receive transaction information therefrom.In addition, the processor component 126 communicates with the prepaidcomponent 124 so as to retrieve the prepaid transaction informationtherefrom. The processor component 126 also combines or packages riskassessment transaction information on the prepaid transactioninformation, including financial information about the customer andmerchant into a recognizable transaction data package. The processorcomponent 126 further communicates with the transceiver component 128 soas to coordinate the transmission of the transaction data package to theauthorizing host 108 and also to receive validation information from theauthorizing host 108. Moreover, the processor component 126 communicateswith the display component to inform the user of the current status offinancial transactions.

In one embodiment, the authorizing host 108 comprises a plurality offunctional components including a transceiver component 148, a prepaidexchange component 150, a risk evaluation component 152, and one or morerisk database components 154. In general, these components may either bepart of a single integrated system or may be comprised of a distributedsystem. In one aspect, the authorizing host 108 is adapted to routeprepaid service requests from the transaction device 104 to theappropriate prepaid exchange host 156. In addition, the authorizing host108 is further adapted to route approval or declines for prepaid goodsand services along with authorization codes from the prepaid exchangehost 156 to the transaction device 104. Advantageously, the authorizinghost 108 facilitates communication between the one or more transactiondevices 104 and the prepaid exchange host 156, wherein prepaidtransaction information including prepaid service requests and productofferings is routed therebetween via the authorizing host 108.

As discussed above, the authorizing host 108 is adapted to determine andevaluate the risk for financial transactions involving promissorypayments received from the transaction device 104. For example, the riskevaluation component 152 evaluates financial information, such as thecheck amount, the ID of the check writer, the merchant, and the type ofmerchandise or products being purchased to determine the risk ofaccepting the check draft or other proffered promissory payment.Moreover, the risk or level thereof is indicative of whether theproffered promissory payment will be backed by suitable funds in theindividual's account when the merchant submits the check draft, eitherelectronically or physically, to the customer's bank. The manner inwhich this risk assessment is done is substantially the same as existingrisk assessment agencies such as TeleCheck™ of Houston, Tex.

Furthermore, the authorizing host 108 is adapted to interact andcommunicate with the one or more transaction devices 104 via thetransceiver components 128, 148, such as a telephonic, satellite, and/orcomputer network (internet) interface. In addition, the authorizing host108 is further adapted to interact and communicate with the prepaidexchange hosts 156 in a similar manner. Also, the authorizing host 108is adapted to perform risk analysis for a plurality of merchants on aplurality of different types of financial transactions. Moreover, theauthorizing host 108 further returns an approval or decline decision tothe transaction device 104 via the transceiver components 128, 148, andthe applicable results can be displayed on the output component 130 ofthe transaction device 104.

In one embodiment, the transceiver component 148 of the authorizing host108 is adapted to receive data and information including the transactiondata package from each transceiver component 128 of the one or moretransaction devices 104. The transceiver component 148 may also beadapted to transmit data and information including approval and/ordecline data to the transaction device 104. Also, the transceivercomponent 148 may, in certain implementations, be adapted to transmitdata and information including prepaid transaction information from tothe prepaid exchange host 156. The transceiver component 148 may also beadapted to receive data and information including prepaid serviceofferings from to the prepaid exchange host 156. It should beappreciated that the transceiver component 148 for the authorizing host108 may have similar scope and functionality as the transceivercomponent 128 for the transaction device 104.

FIG. 2 illustrates one embodiment of the transaction device 104. Asillustrated in FIG. 2, the transaction device 104 may comprise anEclipse™ terminal 170 currently available from Telecheck, Inc. ofHouston, Tex. Advantageously, in one aspect of the present teachings,the Eclipse™ terminal 170 can be adapted so as to integrate the prepaidcomponent 124 therein so that prepaid service requests can be acceptedand sent to the authorizing host 108 for each financial transaction. Itshould be appreciated by those skilled in the art that the remoteterminal or POS device may also include various forms of payment devicesincluding a cash register, personal computer, etc. without departingfrom the scope of the present teachings. Therefore, it should also beappreciated by those skilled in the art that the prepaid component 124as described herein may be integrated into various types of paymentdevices without departing from the scope of the present teachings.

In one embodiment, the Eclipse™ terminal 170 comprises a POS paymentterminal that is adapted to accept various non-cash payment typesincluding checks, credit cards, debit cards, and electronic benefittransfer (EBT) transactions. In addition, the Eclipse™ terminal 170 alsoenables the TeleCheck Electronic Check Acceptance® (ECA®) service andmany other TeleCheck services. Advantageously, TeleCheck and theEclipse™ terminal combine the benefits of accurate databases withadvanced authorization and payment technology.

In one embodiment, the Eclipse™ terminal 170 comprises a built-in inkjet receipt printer 172 that reduces counter space, voids ECAtransactions, and endorses paper checks to include subscriber number andapproval code. Additionally, the Eclipse™ terminal 170 comprises abacklit touch-screen display 174 that provides a user friendly interfaceand exceptional visibility. Moreover, the Eclipse™ terminal 170 rapidlyauthorizes financial transactions so as to speed up checkout. In oneembodiment, the Eclipse™ terminal 170 comprises a check reader 176 thatenables the conversion of paper checks to electronic items. In addition,the Eclipse™ terminal 170 comprises a dual-track magnetic strip reader178 that automatically collects and inputs data from credit cards anddriver's licenses.

Furthermore, the Eclipse™ terminal 170 comprises a full reportingcapability that provides easy access to transaction and paymentinformation including sales amounts and various other details for eachpayment type. In one embodiment, the Eclipse™ terminal 170 stores up to500 check and 300 card transactions. In addition, the Eclipse™ terminal170 comprises check imaging capability that allows merchants to processmost checks without identification. Also, the Eclipse™ terminal 170comprises a user friendly keyboard 180, such as a numeric oralphanumeric keyboard, and a display 182, such as an LCD display orvarious other displays generally known in the art. It should beappreciated by those skilled in the art that the transaction device 104may comprise various other generally known POS devices without departingfrom the scope of the present teachings.

In one aspect, the Eclipse™ terminal 170 can be adapted to recognize andaccept prepaid service or transaction requests. For example, themerchant can request a prepaid transaction and input acquired prepaidinformation from the customer by a variety of methods including pushinga button on the Eclipse™ terminal 170 that allows data and informationto be subsequently inputted into the Eclipse™ terminal 170 via keyboard180 entry or, similarly, by selecting a displayed menu item on thedisplay 182 of the Eclipse™ terminal 170 that corresponds to prepaidtransactions or service requests. The merchant can input via thekeyboard 180 some form of customer identity, such as the cell phonenumber, account number, calling card serial number, etc., so that theEclipse™ terminal 170 can to link the customer, the merchant, theprepaid exchange host 156, and identification of itself to the prepaidtransaction or service request via some form of recognizable data orinformation packet for transmission to the authorizing host 108.

Advantageously, the data or information packet allows the authorizinghost 108 to identify the prepaid transaction or service request forproper processing and routing to the requested prepaid service provider.In addition, the transaction information can be transmitted from theEclipse™ terminal 170 to the authorizing host 108 via the data packetwith a header or signature that identifies the prepaid transaction typeincluding the prepaid service provider, merchant, customer, the Eclipse™terminal 170, and various other relevant information for processing androuting of the prepaid service request. Moreover, the Eclipse™ terminal170 can also be adapted to receive responses from the authorizing host108, such as authorization codes and any other relevant informationrelated to the prepaid transaction.

FIG. 3A illustrates one embodiment of a transaction data/informationpackage 200 relating to a prepaid transaction/service request that canbe transmitted from the transaction device 104 including the Eclipse™terminal 170 to the authorizing host 108. The transaction data package200 of FIG. 3A is simply exemplary of the information that is providedto the authorizing host 108 when a prepaid authorization request isbeing sent to the authorizing host 108 for assessment, and the format ofthe packet can be any of a number of different formats known in the art.As further illustrated in FIG. 3A, the transaction data package 200 maycomprise financial transaction information 202 and prepaid transactioninformation 204, such as information related to the requested prepaidproducts/services and prepaid exchange host identification information.

Additionally, in one aspect, the transaction information 202 may includeone or more information/data components including store information,merchant information, clerk identification number, customer information,transaction number, transaction date, transaction dollar amount, andpayment information, such as credit, check, and/or cash information. Thetransaction information 202 may further include a subscriber informationcode (SIC) that identifies the merchant and/or transaction device 104.The exact contents of the transaction information 202 can vary so longas the appropriate information to identify that a request for a prepaidgood or service is being sought by a particular point of sale device 104for a particular amount. In some circumstances, the request may includean account number that is to receive the prepaid service. For example,if the prepaid good or service is cellular telephone minutes for aparticular account, the telephone number or some other account numberwill be provided to the prepaid exchange host 156. The transactioninformation 202 further includes some identifier of the prepaid exchangehost 156 that corresponds to the request for a pre-paid good or servicesuch that the authorizing host 108 can appropriately route the request.

FIG. 3B illustrates one embodiment of a customer receipt 210 that can bedelivered to a customer from the transaction device 104. The informationon the receipt is indicative of information transmitted from theauthorizing host 108 to the transaction device 104 after receivingauthorization or decline from the pre-paid transaction host 156. Thecustomer receipt 210 of FIG. 3B is simply exemplary of the informationthat is provided to the transaction device 104 when a financialtransaction is approved by the authorizing host 108, and the format ofthe customer receipt 210 can be any of a number of different formats. Inaddition, as further illustrated in FIG. 3B, the customer receipt 210may comprise financial transaction information 212 and prepaidtransaction information 214, such as information related to the prepaidexchange host identification, transaction device identification,authorization code/reference number, security code, personalidentification (PIN) number, products/services provided, pricinginformation, expiration date/period, and instructions for activation bythe customer.

The receipt 210 can either be a printed receipt or simply an electroniccommunication provided to the purchaser via the display screen of theremote transaction device 104. It provides an activation code, e.g., aPIN number, and other information necessary for the user to be able toactivate the prepaid good or service. In one example, if the prepaidgood or service was cellular telephone minutes, the receipt wouldinclude an indication of the number of minutes as well as an activationcode that the purchaser would enter into their telephone to activate theminutes to thereby inhibit fraud.

FIG. 4 illustrates one embodiment of a transaction process 400implemented by the authorizing host 108. As illustrated in FIG. 4, thetransaction process 400, from a start state 402, proceeds to state 404,wherein the authorizing host 108 receives the data/information package200 from at least one of the transaction devices 104. Thedata/information packet 200 can comprise either a request for prepaidauthorization or a request for risk assessment of a financialtransaction such as a promissory payment. As discussed above, thedata/information packet 200 can include a header that is encoded by thepoint of sale transaction device 104 identifying the transaction type tothe authorizing host 108.

After receiving the packet in state 404, the authorizing host 108, indecision state 406, extracts the transaction information includingfinancial information 202 and prepaid transaction information 204 fromthe data/information package or prepaid service request 200 anddetermines whether the transaction is a prepaid service request or riskassessment. If the authorizing host 108 determines that the transactionis a prepaid service request, then the process 400 advances to state408. In state 408, the authorizing host 108 identifies the prepaidexchange host 156 based, at least in part, on the extracted transactioninformation from the data package 200.

Once the identity of the prepaid exchange host 156 is determined instate 408, then the authorizing host 108, in state 410, can process thetransaction by routing the prepaid service request to the determinedprepaid exchange host 156. The prepaid host 156 can then decide whetherto authorize or decline the purchase of the prepaid goods or service insubstantially the same manner the prepaid host 156 would otherwise makethe decision. Subsequently, the prepaid host 156 transmits an approvalor decline back to the authorizing host 108 in state 412 for theauthorizing host 108 to subsequently transmit in state 414 theauthorization or decline to the point of sale transaction device 104. Ifthe prepaid host 156 is approving the transaction, it selects anauthorization code, e.g., a PIN number, that is transmitted to thepurchaser to activate the prepaid good or service. Alternatively, if theprepaid host 156 is declining the transaction, a decline signal is sentpotentially along with an indication of why the transaction wasdeclined.

Alternately, in decision state 406, if the authorizing host 108determines that the transaction is a risk assessment of a profferedpromissory payment, then the authorizing host 108 performs a standardrisk assessment of the financial transaction, in state 420. It should beappreciated by those skilled in the art that various risk assessmentprocesses and procedures can be utilized to determine the risk of thefinancial transaction in state 420. Subsequently, the authorizing host108 determines, in state 422, whether to approve or decline thefinancial transaction based, at least in part, on the receivedtransaction information and the performed risk assessment. Theauthorizing host 108 then provides to the transaction device 104 and themerchant an indication of whether to accept or decline the profferedpromissory payment in a manner known in the art.

Hence, in this implementation, a risk assessment network can be used tonot only determine the risk of assessing a particular financialtransaction, but also to process prepaid transactions. Thus, therequirement of a new network be developed and distributed acrossmultiple store locations is reduced.

More specifically, the one or more transaction devices 104 and theauthorizing host 108 are adapted to interact and communicate so as toprocess financial transactions including prepaid service requests andprepaid financial transactions. In addition, the authorizing host 108can also manage risk or level thereof associated with financialtransactions so as to avoid unacceptable transactions having a moderateto high level of risk. Also, the system 100 including the one or moretransaction devices 104 and the authorizing host 108 can be adapted tocommunicate with a prepaid exchange host 156 so as to process and routefinancial transactions involving prepaid products and services.Moreover, the prepaid exchange host 156 offers prepaid services forpurchase, and prepaid service requests can be routed from the one ormore transaction devices 104 to the prepaid exchange host 156 via theauthorizing host 108. Similarly, authorization data and information,including security codes and PIN numbers, can be routed from the prepaidexchange host 156 to the one or more transaction devices 104 via theauthorizing host 108.

FIG. 5A illustrates one embodiment of a specific type of prepaidtransaction process 500. FIG. 5B illustrates one embodiment of adirection of flow for the prepaid transaction process 500 of FIG. 5A,including a prepaid service request and authorization code delivery, andshould be utilized in conjunction with FIG. 5A with the followingdescription. As illustrated in FIG. 5A, the transaction process 500 froma start state 502 and then proceeds to state 504, wherein the customerrequests a prepaid product or service, such as, for example, prepaidcellular phone service, purchasing minutes on a calling card, etc. Next,in state 506, the merchant accepts the prepaid service request andpayment for the request from the customer. It should be appreciated bythose skilled in the art that the payment may comprise cash, check,credit, debit, or any other generally known payment methods. It shouldalso be appreciated by those skilled in the art that state 508 isutilized by the transaction process 500 to input transaction informationrelated to financial and prepaid information 202, 204 of the prepaidservice request 200 as described with reference to FIG. 3A.

Following, in state 508, the merchant inputs prepaid transactioninformation 200, including financial information 202 and prepaidtransaction information 204, into the transaction device 104, such asEclipse™ terminal 170. Next, in state 510, transaction informationincluding financial information 202 or prepaid transaction information204 are packetized and routed to the authorizing host 108 for assessmentand evaluation thereof. In state 512, the authorizing host 108 extractsthe transaction information 202, 204 and processes the prepaid servicerequest. Additionally, in state 512, the authorizing host 108 identifiesthe prepaid exchange host 156 based, at least in part, on the extractedinformation from the data package 200 and routes the prepaid servicerequest 200 including the prepaid transaction information 204, to theprepaid exchange host 156.

In state 514, after processing the prepaid service request, the prepaidexchange host 156 sends either an authorization, such as a security codeor PIN number, or a decline to the authorizing host 108. In one aspect,processing by the prepaid exchange host 156 may include identifyingwhich product or service is requested by the customer, generating anauthorization code for the customer, and adding minutes to a prepaidcell phone or calling card. In another aspect, processing by the prepaidexchange host 156 may also include crediting the merchant's account withthe amount of purchase of the product or service requested by thecustomer, wherein the merchant's account can be established prior toprocessing the transaction. Next, in state 516, after receiving theauthorization code or decline from the prepaid exchange host 156, theauthorizing host 108 then routes the received authorizing code orinformation to the transaction device 104 for subsequent delivery to themerchant and then to the customer in state 518. After routing,transmission, and delivery of the authorizing code or information instate 518, the transaction process 500 terminates in end state 520.

Advantageously, the system 100 is adapted to establish a communicationlink between the one or more transaction devices 104 and the prepaidexchange host 156 via the authorizing host 108 so that financialtransactions involving prepaid products and services can be processedand routed between the one or more transaction devices 104 and theprepaid exchange host 156 via the authorizing host 108. In this way, theone or more transaction devices 104 can offer prepaid products andservices for purchase, and prepaid service requests can be routed fromthe one or more transaction devices 104 to the prepaid exchange host 156via the authorizing host 108. Similarly, prepaid authorization data andinformation, including security codes and PIN numbers, can be routedfrom the prepaid exchange host 156 to the one or more transactiondevices 104 via the authorizing host 108.

Although the following description exemplifies one embodiment of thepresent teachings, it should be understood that various omissions,substitutions, and changes in the form of the detail of the apparatus,system, and/or method as illustrated as well as the uses thereof, may bemade by those skilled in the art, without departing from the spirit ofthe present teachings. Consequently, the scope of the present teachingsshould not be limited to the disclosed embodiments, but should bedefined by the appended claims.

1. A system for assessing the risk associated with a profferedpromissory payment wherein the system is linked to at least one prepaidgoods or service provider, the system comprising: a plurality of pointof sale devices located within a plurality of distributed locations,wherein the plurality of point of sale devices acquire information aboutproffered promissory payments and also acquire information aboutrequests for prepaid goods or services and wherein the plurality ofpoint of sale devices include a communications interface forcommunicating information to individuals within the plurality ofdistributed locations; and an authorizing host that is communicativelylinked to the plurality of point of sale devices wherein the authorizinghost receives the information about the proffered promissory paymentsand assesses the risk of accepting the proffered promissory payment andwherein the authorizing host communicates acceptance or declineinformation to the point of sale device corresponding to a particularproffered promissory payment and wherein the authorizing host is adaptedto route a request for a prepaid good or service to the correspondinggoods or services provider and then transmit acceptance or declineinformation to the point of sale device originating the request forprepaid good or service.
 2. The system of claim 1, wherein the pluralityof transaction devices acquire financial information about a profferedpromissory payment that include the amount, the account corresponding tothe proffered promissory payment, the account holder and furthertransmits information about the merchant to the authorizing host suchthat the authorizing host can perform risk assessment on the profferedpromissory payment.
 3. The system of claim 1, wherein the plurality oftransaction devices include an input for inputting information whereinthe communications interface comprises a display screen that displaysthe acceptance and decline information.
 4. The system of claim 1,wherein the plurality of transaction devices allow the merchant totransmit requests for prepaid goods or services for a plurality ofdifferent prepaid goods and service providers and receive acceptance anddecline information from the plurality of different prepaid goods andservice providers via the authorizing host.
 5. The system of claim 4,wherein the plurality of different prepaid goods and service providersinclude cellular telephone providers, long distance telephone providers,video rental providers.
 6. The system of claim 4, wherein theauthorizing host and the plurality of transaction devices are configuredto provide an authorizing code to the purchaser of the prepaid goods andservices in response to the prepaid good and service provider approvingthe request for prepaid goods and services.
 7. The system of claim 6,wherein the authorizing code comprises a PIN number that the purchaserutilizes to activate the prepaid good or service.
 8. A point of saledevice adapted to be positioned within a store for transmittingfinancial information about proffered promissory payments to a centralauthorizing agency, wherein the point of sale device is further adaptedto receive requests for prepaid goods and services and transmit thoserequests to the central authorizing agency for subsequent retransmissionto the prepaid goods and service provider, and wherein the point of saledevice is further adapted to provide approval or decline informationabout the proffered promissory payments and the prepaid goods andservice requests to individuals.
 9. The device of claim 8, wherein thepoint of sale device comprises one or more user inputs for inputtinginformation about the proffered promissory payment and the requests forprepaid goods and services into the point of sale device.
 10. The deviceof claim 9, wherein the one or more user inputs includes a scanner forscanning magnetic information off of checks.
 11. The device of claim 9,wherein the one or more user inputs includes a keypad for entering datarelating to the request for prepaid goods and services.
 12. The deviceof claim 8, wherein the point of sale device includes a display fordisplaying an authorization code to the purchaser of the pre-paid goodsand services.
 13. The device of claim 12, wherein the authorization codecomprises a PIN number suitable for activating additional minutes on acellular telephone account.
 14. A system for processing requests forprepaid goods and service, the system comprising a risk assessmentsystem having a plurality of distributed transaction devices located ata plurality of different locations and a authorizing host that receivesinformation about proffered promissory payments from the plurality ofdistributed transaction devices, wherein the authorizing host performs arisk assessment on the proffered promissory payments and sends approvalor decline signals to the distributed transaction device where theproffered promissory payment originated, wherein the risk assessmentsystem is configured to allow individuals to send requests for prepaidgoods and services via the risk assessment system to prepaid good andservices vendors independent of the risk assessment system and receiveapproval information from the goods and service vendors via the riskassessment system.
 15. The system of claim 14, wherein the plurality oftransaction devices acquire financial information about a profferedpromissory payment that include the amount, the account corresponding tothe proffered promissory payment, the account holder and furthertransmits information about the merchant to the authorizing host suchthat the authorizing host can perform risk assessment on the profferedpromissory payment.
 16. The system of claim 14, wherein the plurality oftransaction devices include an input for inputting information andwherein the communications interface comprises a display screen thatdisplays the acceptance and decline information.
 17. The system of claim14, wherein the plurality of transaction devices allow the merchant totransmit requests for prepaid goods or services for a plurality ofdifferent prepaid goods and service providers and receive acceptance anddecline information from the plurality of different prepaid goods andservice providers via the authorizing host.
 18. The system of claim 17,wherein the plurality of different prepaid goods and service providersinclude cellular telephone providers, long distance telephone providers,video rental providers.
 19. The system of claim 17, wherein theauthorizing host and the plurality of transaction devices are configuredto provide an authorizing code to the purchaser of the prepaid goods andservices in response to the prepaid good and service provider approvingthe request for prepaid goods and services.
 20. The system of claim 19,wherein the authorizing code comprises a PIN number that the purchaserutilizes to activate the prepaid good or service. 21-41. (canceled)